Rewrite the video title ‘Crypto Wallets Demystified: Exploring Types and Pros/Cons
Write a 1000-word comprehensive and engaging article from the script hello everyone Serenity here I want to welcome you back to down home crypto now in this episode we’re going to continue our journey from Zero to Hero and we’re going to start talking about wallets because as we talked about in the last episode we talked about the dapps which is essentially like a store or an application in which we interact with now to interact of course anytime you go to the store you got to have a wallet right well there’s a lot of different variations and there’s no one wallet that fits all so we’re gonna dive into those let you know the differences of them and which wallet you might want to start with but if you would please do me a huge favor Take A Moment Like This video subscribe to the channel and click that Bell notification every time I upload a video some of this information can be time sensitive most importantly as always please please if there’s someone in your life that has no idea this world exists or just doesn’t understand it share them this information let them know there is another way and there is a way to learn where I’m going to walk him through step by step and they don’t have to be college educated or rich or tech savvy they simply have to have the desire to change their life and encourage to Follow that dream and they too can join us on this great crypto Adventure so without further Ado let’s go learn about crypto wallets now before you go to the store you’re always prepared right you jump out and you grab your wallet and your wallet’s great if you’re running paper or plastic now what if you’re running a bunch of coins then maybe you want to take your piggy bank because they go in there great easy to transport right but what if you’re taking crypto coins well they don’t fit in the piggy bank and they don’t stay well in the wallet so not a good fit but now electronic currency it’s very specific you have to have an electronic wallet now that can be utilized on a phone on a computer also on a thumb drive there’s a lot of different ways to do this and we’re going to cover the different types of wallets but I want you to understand that there is currently no one wallet that operates for every cryptocurrency so to help you get your mind wrapped around this I’ve broken down the wallets into three basic categories But please understand this is not all the factors and the points I’m going to cover are not all the pieces to it these are just to give you an example of the differences and what the pros and cons are so the first category we’re going to talk about is a custodial wallet now custodial wall is kind of like your coinbase.com or crypto.com or your Robinhood or uphold now they have some great benefits and the first is it’s real really easy to buy crypto utilizing your normal fiat currency and Fiat of course is the currency of your country for me it’s the US dollar some it’s Canadian dollar others it could be the Mexican peso um Fiat just refers to the native currency of your particular Country Now typically custodial walls are housed on a central exchange which means all the coins on that Central exchange have been verified you’re not going to end up with some weird random coin that somebody just created yesterday they’ve been verified they’ve been researched and it’s usually the Bitcoins like your ethereum your bitcoin your doge and sheba things like that so you’re usually pretty safe with any coin you purchase on there now another great benefit is if you do get on essential exchange you purchase like an ethereum something like that if you hold that coin in that custodial wallet oftentimes those bigger coins will actually pay interest now it might only be one percent per year but still it’s a little bit more than what you had so there’s some great benefits for having customer wallet holding your coins there but there are also some very big risks or negatives associated with custody wallets so the first is that they decide what coins you can hold because you can only hold coins that they approved and authorized to hold in that wallet but because they decided what we can hold you’re also limited on the options you have available okay so a lot of the newer really explosive potential coins aren’t going to be listed on there but that means also the high risk coins aren’t going to be listed on there either so it’s a great starting point now this is only through typically an essential exchange of some sort where you have to go through a kyc process you’re going to have all your records documentation everything out there so the government’s going to know exactly what you’re holding what you’re not and they’re going to be able to track that now with the new regulation that’s great because typically they have different tax apps things along those lines but it also means that big brother is watching so kind of take it how you choose now also I found with many of the essential exchanges there’s extra fees Associated so for instance on a D5 wallet if I were to send one coin from one wallet to another I just have to pay the gas fees but if I try to do that on a central exchange or custodial wallet typically there’s an extra withdrawal fee or transfer fee something like that on top of the normal gas fees so please understand that there can be some extra fees on there so be aware and keep an eye on those extra fees because they can add up quickly now the most important thing I can stress to you on a custodial wallet is the number one huge risk of all if you don’t have the coins in your possession you do not own them yeah these folks are holding these coins for you in a wallet on their exchange now what happens is they go down even if the coins still exist it’s still not there so custodial wall the biggest risk is they are in possession of your coins and if something were to happen to that company those coins are gone so as we say in the biz if it’s not in your hands it ain’t yours so the next category we’re going to cover is a hot non-custodial wallet now some examples of those are your meta mask or your trust wallet your Exodus things along those lines it’s a wallet that lives on the internet at all times that’s what makes it hot now some of the benefits of these is they’re really easy to interact within the D5 space which means you can get in those new protocols just as they’re watching by those nfts go to openc it makes it really easy to interact without a whole lot of steps and as we covered in the last video where we talked about the D apps well these hot non-custodial wallets are the easiest smoothest way to operate with most d-apps because they’re pretty much interact with everything and another great benefit is we have control over coins so even if that Central exchange shuts down tomorrow you know what we still have our coins in our wallets we have the seed phrases so we are in control of our coins now of course as always these have some drawbacks as well so the first is they’re operated on what’s called a seed phrase which could be a series of random words from 12 to 24 words in a certain order and if you lose that seed phrase you cannot re-access that wallet and there’s no one to call there’s no support So doing our own due diligence on Safety and Security is absolutely Paramount utilizing a hot non-custodial wallet now the other concern to be aware of is these tokens are all he’s on the net which makes these susceptible to cyber attacks to targeting things like that so if you get a virus on your computer by going to some weird game site or something and it affects that it can actually access your wallet and drain your account so it really follows up to us to be very diligent and absolutely know what we’re doing and be careful about it I hate to tell you the next downside is there’s no support some of us has gotten so spoiled that we can call the 1-800 number hey I sent money to the wrong guy down in South America and that’s not where it’s supposed to go can you fix it and the banker whoever can fix that guess what in this world there are no support numbers there is nobody to call it is up to each of us to do our due diligence to learn what we’re doing before we do it that way we don’t send money the wrong place or invest in the wrong thing now the last one I listed as the biggest negative of all is we have total control so whatever we click on whatever we do we are absolutely accountable there’s no going back and say oh yeah but Bob said to do this well I’m sorry but Bob might have been a scammer so it really falls on us to be diligent and to be very responsible and accountable for our actions now the last category we’re going to talk about is a cold non-custodial wallet these are essentially your wedgers or Treasures or alley Pals these are a hardware wallet that are pulled off of the internet and give you complete custody of your tokens now some of the benefits these are tokens don’t live on the net so they’re not susceptible to cyber attacks they’re not constantly out there as a target for people to try and take now most these cold wallets do ink up to a lot of dapps but occasionally we do have to move from Cold Storage onto like a metamask for a hot wallet interact with adapt and then turn around and move them back so there might be an extra step in there but really not too bad typically and the biggest benefit of all is these give you total control these coins are in your hand they are in your possession nobody can take those away from you so that is the biggest thing about a cold storage wallet is these coins are absolutely and totally yours but as always there’s some downsides too let’s go through those real quick now the first is being that it’s a physical device is it can be lost whether it be similar to a phone device or a thumb drive or any different format you utilize it can be lost it can be broken it can be stolen there’s a great article where a guy had like two million dollars worth of bitcoin he couldn’t get off his Cold Storage wallet he had to hire somebody to hack into it for him because he lost a seed phrase for it so it still has some the same risk there it can be lost it can be stolen things like that but without the seed phrase they still can’t access it now with a lot of Cold Storage wallets there is a limitation of what tokens you can put on that wallet so as your portfolio begins to grow you may run into coins that you just simply can’t put in Cold Storage okay and wallets are always evolving things are always growing that’s going to continue to change now with that of course that means that Hardware device needs constant updates and if you get a corrupted update or something goes wrong or when you put it on the net to get an update you are susceptible at that point in time so it’s not a full bulletproof process now there is a little bit more support on a cold storage wallet but not as much as you might think there’s not a 1 800 number you can call say hey can you fix this no they’re going to support the hardware they’re going to support how you operate it but if you do something wrong with it that is still your risk and your accountability and that leads to the last and final negative on a cold storage wallet is you have total control once again that’s the biggest is US humans we are not the smartest monkeys in the bunch and we do make a lot of mistakes so if we transfer tokens to the wrong wallet address things like that that still falls upon us so due diligence is always absolutely critical and definitely know what you’re doing before you start clicking buttons randomly saying yes I accept this or sign this or do that make sure you’re reading it make sure you’re doing your research there is no foolproof way out here and remember it says down here at the bottom there is no wallet that interacts with all forms of cryptocurrency there’s always going to be limitations so most of us in the space we have multiple wallets because different gaps or different reasons to have them require different types of wallets and that’s okay so as you can tell currently there’s need for a lot of different types of wallets a lot of different reasons to have different things in different places but there’s a few very specific rules we absolutely need to follow number One never type your seed phrase out on a computer document and leave it there it is then susceptible to Cyber attack once they get the seed phrase they have the keys to your kingdom always write them down on paper and I always recommend making multiple copies of that keep one set locally in a fire safe or something in case something happens put the other set of free seed phrases into a safety deposit box or somewhere off-site in case God forbids your house burns down something like that the other is never give out your seed phrases don’t trust anyone seriously nobody unless it’s like your spouse and she’s like in control anyway like in my house um yeah no I don’t give my seed phrase to my children my friends my family no and the most important thing of always is please remember we are 100 accountable within the crypto space we don’t get to call an 800 number we don’t get say oh I sent it to the wrong address and guess what it’s gone that’s how it works so do your due diligence be accountable and even if you go in and buy something say oh yeah but I listen to Bob because he said to buy it well that’s not taking accountability and don’t listen to me don’t listen to anybody else out there always do your own research make your own choices because only you know the situation you’re in and what you risk to reward comfortability level so I hope this introduced you a little bit to wallets in future videos we’re going to set up some of these walls and walk you through the process but I wanted you to understand what all it is and what are the varying types of wallets so as always thank you so much for your time and until next time have a great night foreign [Music] foreign that includes Types of crypto wallets. 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Awesome info as always